Directive 065: Resources Applications for Oil and Gas Reservoirs ...

51(4)(b), 55(2), and 56, although each option is available if there is a dispute on each issue.
For example, an application for the declaration of a common purchaser under Section 51(1)
typically also includes requests under Section 51(4)(b) for allocation of production among
wells in a pool and under Section 56 respecting the effective date of an order. Requests made
under Sections 51 and 56 should be included in the same application. A request under Section
55(2) for the ERCB to set prices may be filed together with the initial request for the
declaration of the common purchaser or after the common purchaser order has been issued
and the parties have attempted but failed to reach an agreement on the price to be paid for the
gas.
1.2.4 How the ERCB Processes the Application
In evaluating an application for a common purchaser order, the ERCB considers
• whether drainage has occurred subsequent to the completion of a well on the applicant’s
property and, if so, to what extent,
• whether opportunities have existed for the marketing of production from the applicant’s
property and, if so, when and the nature of them,
• future prospects for marketing the production, and
• if application is being made under Sections 51(4)(a), 51(4)(b), and/or 55(2) for the
designation of a delivery point, the proportion of production to be purchased and/or the
setting of the price to paid, if the applicant could not make reasonable arrangements on
these matters.
Each application for a common purchaser order proceeds to a public hearing.
1.2.5 Requirements for an Application for a Common Purchaser Order (file 12 copies)
Requirements
1) A statement of what you are requesting,
including
a) the purchasers proposed as the common
purchasers,
b) the pool to which the common purchaser
declaration would apply, and
c) the proposed effective date of the order.
Comments
For example, Company X applies, pursuant to
Section 51(1) of the OGCA, for an order
declaring Company Z as a common purchaser
of gas produced from the Woodward Viking A
Pool. Company X also requests, pursuant to
Section 56 of the OGCA, that the order be
effective as of the date of the application and
that, pursuant to Section 51(4)(b), the ERCB
direct the proportion of gas that the common
purchaser shall purchase from each producer or
owner offering gas for sale.
2) A statement of whether you are requesting,
pursuant to Section 51(4) or 55(2) of the
OGCA, that the ERCB, to give effect to the
common purchaser declaration, direct
ERCB Directive 065: Resources Applications / Common Purchaser (October 2011) • 1-7